Small Business Support Strategies in Tacoma, WA

The Challenge

Tacoma's small business sector faced several critical challenges:

1. Access to Capital: Many small businesses struggled to secure affordable financing, particularly in underserved neighborhoods.

2. Regulatory Complexity: Local regulations and permitting processes were often complex, making it difficult for new businesses to navigate.

3. Lack of Support Networks: Many entrepreneurs lacked access to mentoring, technical assistance, and networking opportunities that could help them grow their businesses.

4. Economic Disruption: The COVID-19 pandemic exacerbated financial hardships for small businesses, with many facing closure or reduced revenue.

Our Approach

1. Financial Assistance Programs

   • Worked with local banks and credit unions to create small business loan programs with low-interest rates and flexible repayment terms.

   • Introduced micro-grants for startups and businesses in need of capital to pivot or recover from the pandemic.

2. Simplifying Regulations

   • Collaborated with local government agencies to streamline the business permit and licensing process.

   • Developed a "one-stop-shop" online portal for businesses to easily access necessary permits and resources.

3. Business Education and Technical Assistance

   • Established workshops and webinars on topics such as business planning, marketing, digital transformation, and financial literacy.

   • Partnered with local universities and community organizations to provide mentorship programs that paired experienced business owners with emerging entrepreneurs.

4. Networking and Community Building

   • Created local business incubators and networking events to foster collaboration and sharing of resources among small businesses.

   • Promoted the formation of industry-specific business clusters, enabling businesses to share best practices and create joint marketing opportunities.

Key Outcomes

• Access to Financing

  • Secured $10 million in funding through loan programs and micro-grants, assisting 350 small businesses, 40% of which were minority-owned.

  • Launched a revolving loan fund that has continued to support new businesses, with over $2 million in loans issued in the first year.

• Simplified Business Regulations

  • Reduced the average time required for business registration and permit approval from 45 to 15 days.

  • Launched a mobile-friendly app for small business owners to manage permits, licenses, and applications easily.

• Business Education Impact

  • Over 500 entrepreneurs participated in free business training programs, with 85% reporting increased confidence in managing their businesses.

  • 70% of participants in mentorship programs reported an increase in annual revenues or business expansion.

• Fostered Collaboration and Networking

  • Established Tacoma’s first Small Business Expo, which attracted over 1,000 participants and provided valuable networking opportunities.

  • Launched a digital platform for Tacoma small businesses, allowing them to advertise, share resources, and collaborate on joint initiatives.

Case Example: Pandemic Recovery Initiative
In response to the economic impact of the COVID-19 pandemic, GMPRC designed a special recovery initiative focused on supporting businesses in the hardest-hit sectors, such as hospitality and retail. Key actions included:

• Providing $3 million in emergency relief grants to businesses forced to close or reduce operations.

• Offering free marketing services to businesses transitioning to e-commerce.

• Facilitating virtual events and webinars to help businesses adapt to new market conditions.

Lessons Learned

1. Tailored Financial Solutions Matter: Flexible loan and grant options helped businesses stay afloat during challenging times, particularly for those without traditional access to credit.

2. Simplicity Drives Success: Streamlining the permitting process and offering an easy-to-navigate digital platform significantly reduced barriers for small business owners.

3. Community Collaboration Strengthens Impact: Connecting businesses with mentors, networks, and peers created a robust support ecosystem that benefited the local economy as a whole.

4. Resilience through Education: Providing businesses with the tools and knowledge to adapt to change (such as digital transformation) resulted in long-term sustainability.

Future Directions

GMPRC continues to support Tacoma’s small businesses by expanding funding programs, advocating for further regulatory reform, and increasing access to specialized resources for underrepresented business owners. Upcoming research focuses on assessing the long-term impact of business education programs and exploring new opportunities for growth in the post-pandemic economy.